Expert: MTG sold Baltic businesses at a good price

The Swedish media group Modern Times Group (MTG) sold its Baltic businesses at a good price, a Lithuanian investment expert told LETA/BNS on Friday.

"It was a very good deal, because 12xEBIT shows that
the former owner sold (the business) at a really good price," told Marius Dubnikovas, chairman of the Tax
Commission at the Lithuanian Business Confederation.

"On the other hand, the buyer really wanted that deal
and paid a solid EBIT multiple. This wasn't going through the market and buying
a cheap thing. It was a purposeful purchase. From the financial point of view,
a good price was offered and it was paid," he said.

MTG sold 100 % of
its Baltic business to the global private equity firm Providence Equity Partners for 115 mln euros, which is equivalent
to 12 times EBIT for the full year 2016.

Dubnikovas noted, however, that the business' historical
EBIT performance should be look at to see how good the price is.

"We should look at how stable that EBIT is and if this
is a usual result. Perhaps the 2016 result was lower for some reasons. The
historical performance should be looked at to see how fluctuating it is. The
assessment may depend on this," he said.

EBIT results for the Baltic businesses are not available
separately in MTG's reports.

Providence Equity
Partners owns the Lithuanian mobile operator Bite Lietuva. Dubnikovas said he believes that there could be
potential synergies between Bite and
the acquired TV and radio channels and news websites.

The private equity firm last year sought to take control of
the Estonian telecom group Starman, which owns the Lithuanian
TV services provider Cgates, but
the deal did not take place.

Circular economy for modern growth: EU and the Baltics EU’s circular economy plans are aimed at efficient use of natural resources and raw materials, waste disposal, while fostering energy savings and reducing CO2. Adequate actions in the Baltic States would contribute to “closing the loop” of product lifecycles through greater recycling and re-use, while bringing benefits to environment, business and economic growth.